IMPACT OF GOVERNMENT INFRASTRUCTURAL EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

ABSTRACT

The study examines impact of government infrastructural expenditure on economic growth in Nigeria: A case study of Oredo local government area, Edo State.The public sector has a role to play in society to ensure the smooth running of economic activities. Infrastructure is a key to economic growth; it serves as a catalyst for public development in the entire government agenda. Infrastructure expenditure grows the economy because it affects most human endeavours in various fields of life such as production, construction, technology and procurements. Infrastructures are those socio-economic amenities that promote or facilitate economic growth. The need for infrastructural development cannot be over emphasized. Descriptive survey research design was utilized in the research with questionnaires as the method of data collection. The sample size for this study is two hundred and twenty drawn purposively from the population. A Sample size of one hundred and fifty (150) questionnaires was drawn randomly from the population. Based on the findings, the study therefore made the following conclusion that government infrastructural expenditure has a significant impact on economic growth of Nigeria.  Also, economic growth in Nigerian over the years has been significantly affected by both capital and recurrent expenditure but the level of their effect varies in degree and extent. This study found that government expenditure would have really positively impacted the level of economic growth but for the issue of corruption and institutional oddity though the intended capital expenditure is indirectly converted to recurrent expenditure somehow which has its own effect on the economic growth in Oredo local government area of Edo State. Based on the findings, the study made the following recommendations that the government should increase government expenditure by 20 percent as against 8 percent increase in 2018 to investment in infrastructural development especially electricity supply in order to transform effective and efficient growth of the Nigerian economy. Likewise, nation’s resources need to be well managed and properly channeled towards execution of projects that will promote development and growth of the economy, the government should to tackle the menace of leakages in the expenditure channel, government need to strengthen her institutions most importantly those anti-graft agencies through improved funding, capacity building and orientation so as to combat corruption and corrupt practices.